Property valuation and appraisal are not optional activities, but essential ones. From investment decisions and financing to legal compliance and financial reporting, independent valuation supports data-driven decision-making. This report helps stakeholders make informed decisions based on objective analysis.
Who Needs Property Advisory and Appraisal Services in Indonesia?
- Property Owners
Property appraisal helps owners determine pricing strategies, renovation readiness, and asset planning. One of the biggest mistakes asset owners make is not knowing the true market value of their property. This often leads to assets that are not aligned with their Highest and Best Use (HBU), resulting in inefficiency and poor asset management.
Many of our clients have benefited from appraisal reports. The most common reason is that they can determine the intrinsic value of their property for bank financing purposes. They now know how much loan capital they can obtain by leveraging the related property.
Read Also: Essential Reasons to Get a Professional Property Valuation
2. Property Investors
Valuation advisory support is very helpful for property investment decisions in Indonesia. Valuation reports essentially help clients determine the true value of a property. Therefore, they can also help investors determine their highest entry price for purchasing a property. Valuation reports also provide investors with an overview of the risks they will face. These risks can range from regulatory risks to market risks. Therefore, valuation reports are very important for property investors.
Inbereng
In addition, property valuation is essential in the Inbreng process. Inbreng refers to the contribution of non-cash assets (such as land, buildings, or shares) as capital into a company, which essentially transfers ownership to become part of the company’s own capital. This often involves complex legal and taxation procedures for assets such as real estate, and sometimes relates to inheritance law to return inherited property to the estate for fair distribution. Therefore, the value of property and non-cash assets to be transferred must be re-evaluated to determine their actual value at that time using applicable valuation methods.
Read Also: Best Area for Property Investment in Bali
3. Developers
Sumertadan & Partners Valuation and Advisory Firms can assist property developers in various aspects. One of our capabilities is conducting Highest and Best Use Analysis (HBU). This analysis helps developers determine the best type of property to build on a given site to maximize its value. This is important for property developers because, naturally, they want the properties they sell to generate maximum profits. Many developers in Indonesia use our services to conduct HBU analysis before starting their projects, and it has proven to be very beneficial.
We can also conduct Feasibility Studies. For developers, feasibility studies serve as a framework for decision-making. This study provides a clear understanding of the project’s feasibility, supports negotiations with landowners and lenders, assists in obtaining bank financing, and ensures that the development concept is financially and legally sound. In markets such as Bali and Indonesia, where zoning, infrastructure, and market conditions can vary significantly, feasibility studies are essential for responsible and sustainable property development. Therefore, we often assist property developers in preparing feasibility studies for properties under development.
Read Also: Highest and Best Use Analysis
4. Banks & Financial Institution
Independent appraisal is a key component in the bank financing process. We assist them in assessing the loan feasibility of collateralized assets. By using our services, banks can also comply with applicable regulations in Indonesia that require banks to use independent appraisers in the credit application process. This also aims to protect consumers and customers in the credit application process.
5. Lawyers & Notaries
Legal issues related to property often require objective and accountable valuations. Attorneys and notaries rely on professional appraisal consultation services to support legal due diligence, dispute resolution, estate planning, and court proceedings. In cases involving asset division, succession, or property disputes, a court-accepted appraisals provide an independent and credible basis for legal arguments and settlements.
Appraisal advisory services support legal due diligence by ensuring that property values are evaluated in accordance with applicable appraisal standards and regulatory requirements. Independent appraisal reports prepared by registered property appraisers are often used as supporting documents in legal proceedings, helping to reduce conflict, strengthen legal positions, and ensure transparency for all parties involved.
Dividing Martial Property
The division of marital property requires the services of a KJPP because the process often involves large and diverse assets that are prone to differences in perception and conflicts of interest between the parties. Sumertadana and Partners Valuation and Firm Appraisers, as independent appraisers, provide objective, professional opinions on value that comply with appraisal standards and market conditions on the date of appraisal, including the separation of land and building values or the fair valuation of movable assets and investments. With an official appraisal report, the division of assets can be carried out fairly, transparently, and legally accountable, minimizing disputes, speeding up resolution, and providing a strong basis for both mutual agreement and court proceedings.
Read also: Dividing Marital Property
6. Companies (Financial Reporting)
For corporate entities, accurate property valuation is a critical component of financial reporting and governance. Independent appraisal services support asset revaluation for financial statements, fair value measurement, and compliance with audit requirements under applicable accounting standards. A valuation report can revalue a company’s assets, which can assist in various processes such as taxation and depreciation, and will have an effect on the company’s net profit.
Independent appraisal supports compliance with financial reporting and audit requirements by providing objective, well-documented valuation opinions that can be relied upon by auditors, regulators, and stakeholders. For companies with significant real estate holdings, professional valuation advisory services enhance transparency, strengthen internal controls, and reduce the risk of misstatement.
Get the best offers for KJPP Sumertadana and Partners services by placing an order now!
or visiting our address directly on Kebo Iwa Utara Street III Number 64X, Banjar Tegal Linggah, Padang Sambian Kaja, Denpasar-Bali
KJPP SDR Contact Number
Pingback: hIghest and Best Use Analysis - KJPP Sumertadana dan Rekan